Yahoo Finance Q1 Earnings Highlights: Vital Farms (NASDAQ:VITL) Vs The Rest Of The Perishable Food Stocks
As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the perishable food industry, including Vital Farms (NASDAQ:VITL) and its peers.
The perishable food industry is diverse, encompassing large-scale producers and distributors to specialty and artisanal brands. These companies sell produce, dairy products, meats, and baked goods and have become integral to serving modern American consumers who prioritize freshness, quality, and nutritional value. Investing in perishable food stocks presents both opportunities and challenges. While the perishable nature of products can introduce risks related to supply chain management and shelf life, it also creates a constant demand driven by the necessity for fresh food. Companies that can efficiently manage inventory, distribution, and quality control are well-positioned to thrive in this competitive market. Navigating the perishable food industry requires adherence to strict food safety standards, regulations, and labeling requirements.
The 11 perishable food stocks we track reported a decent Q1; on average, revenues beat analyst consensus estimates by 4.5%. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and perishable food stocks have held roughly steady amidst all this, with share prices up 0.2% on average since the previous earnings results.
Vital Farms (NASDAQ:VITL)
With an emphasis on ethically produced products, Vital Farms (NASDAQ:NATR) specializes in pasture-raised eggs and butter.
Vital Farms reported revenues of $147.9 million, up 24.1% year on year, exceeding analysts' expectations by 8.1%. Overall, it was an incredible quarter for the company with an impressive beat of analysts' earnings estimates.
“2024 is off to a very strong start with record net revenue in the first quarter of $147.9 million, reflecting net revenue growth of 24.1%. Thanks to our stakeholders, including farmers and suppliers, customers and consumers, communities and the environment, crew members, and stockholders, we are able to succeed in our mission of bringing ethical food to the table.” said Russell Diez-Canseco, Vital Farms’ President and CEO.
Vital Farms scored the highest full-year guidance raise of the whole group. The stock is up 44.6% since reporting and currently trades at $43.25.
Best Q1: Mission Produce (NASDAQ:AVO)
Founded in 1983 in California, Mission Produce (NASDAQ:AVO) grows, packages, and distributes avocados.
Mission Produce reported revenues of $297.6 million, up 34.6% year on year, outperforming analysts' expectations by 31.4%. It was an incredible quarter for the company with an impressive beat of analysts' earnings estimates.
Mission Produce pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 9% since reporting. It currently trades at $10.39.
Is now the time to buy Mission Produce? Access our full analysis of the earnings results here, it's free.
Weakest Q1: Fresh Del Monte Produce (NYSE:FDP)
Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE:FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables.
Fresh Del Monte Produce reported revenues of $1.11 billion, down 1.8% year on year, falling short of analysts' expectations by 3.8%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
Fresh Del Monte Produce had the weakest performance against analyst estimates in the group. As expected, the stock is down 15.2% since the results and currently trades at $22.07.
Read our full analysis of Fresh Del Monte Produce's results here.
Pilgrim's Pride (NASDAQ:PPC)
Offering everything from pre-marinated to frozen chicken, Pilgrim’s Pride (NASDAQ:PPC) produces, processes, and distributes chicken products to retailers and food service customers.
Pilgrim's Pride reported revenues of $4.36 billion, up 4.7% year on year, falling short of analysts' expectations by 1.5%. Revenue aside, it was a strong quarter for the company with a solid beat of analysts' earnings estimates.
The stock is up 8.3% since reporting and currently trades at $38.29.
Read our full, actionable report on Pilgrim's Pride here, it's free.
Beyond Meat (NASDAQ:BYND)
A pioneer at the forefront of the plant-based protein revolution, Beyond Meat (NASDAQGS:BYND) is a food company crafting innovative, sustainable, and delicious alternatives to traditional meat products.
Beyond Meat reported revenues of $75.6 million, down 18% year on year, in line with analysts' expectations. Overall, it was a weak quarter for the company with a miss of analysts' earnings estimates.
The stock is down 18% since reporting and currently trades at $6.73.
Read our full, actionable report on Beyond Meat here, it's free.
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